The Bulgarian National Bank refused to grant preliminary approval to D Commerce Bank AD's request to acquire Victoria Commercial Bank EAD, saying the acquisition and business development strategy proposed by the buyer posed considerable risks.
The Bulgarian regulator argued that the investor's plan to develop Victoria Bank as a separate entity rather than through its merger into D Bank would not guarantee a sustainable business management model and the financial stabilization of Victoria in the long term. It would also require permanent capital and liquidity support from the new owner, which could undermine D Bank's financial stability in the long term, the central bank noted.
D Bank and Bulgarian American Credit Bank AD were invited in October 2016 to participate in the second round of a sale procedure launched for Victoria, a former unit of collapsed Bulgarian lender Corporate Commercial Bank AD. The sale was launched in March 2016, with eight investors initially expressing interest in the lender.